Thursday, January 31, 2013

The rationale behind getting employers to bear the levy was to
discourage them from employing foreigners.... - Bernama, - Star,
16/4/2009

On 1/4/2009, the Malaysian government firmly put a stop on employers recovering levy they paid to bring in and employ migrant workers from migrant workers through wage deductions.

But, now it seems that they have yet again changed their minds... allowing employers to recover the levy from migrant workers. Why? Because employers did not want to comply with the Minimum Wage Order to pay all workers a minimum wage of RM900-00....

Is the Malaysian government concerned about Malaysian workers at all? For now, they freed employers from paying levy themselves. So, employers will again be freed from the 'market forces' that will benefit workers - market forces that would effectively cause just increases in wages that will benefit local workers.

The preference of migrant workers is also because they can be very easily exploited by the employer. Terminate them wroingfully, don't pay wages or cheat them of their overtime - and the migrant worker effectively has no recourse to justice. If they file a complaint at the Labour Department or the Industrial Relations Department or their cases are pending, the Malaysian government just cancels their work permit/pass having total disregard to justice... and the migrants have to leave the country. End result, employers that cheat them or wrongfully terminate them get off scott-free - they cannot do this to Malaysian workers.

Thanks to what this BN cabinet do, they have not only discriminated against migrant workers - but also has weakened the prospect of Malaysian workers getting better wages and working conditions.

Was the Malaysian Trade Union Congress(MTUC) that represents all workers in Malaysia even consulted before the Cabinet made this decision? Were the migrant workers consulted?

Or, this just another "LISTEN...LISTEN...LISTEN TO ME..." kind of decision. People were not even aware that the government was considering such a move. Ultimately, what the government is doing is denying migrant workers minimum wages, is it not. (And employers will say, if that is the case better hire a foreign worker rather than a local worker?)

Foreign workers will now have to pay levy as in 1992

7:09PM Jan 30, 2013

The
cabinet today decided that with immediate effect, foreign workers will
now have to pay their levy fees, which was previously borne by their
employers.

In a statement, Second Finance Minister Ahmad Husni Hanadzlah (left)
said that the imposition of levy on foreign workers was first
introduced in 1992, where it was imposed to finance public
amenity-related projects like the construction of clinics, roads, and
other services for Malaysians.

Beginning April 1, 2009, the
government had decided that the levy for foreign workers is to be borne
by the employers. This decision was made to control the influx of
foreign workers at that time. Despite this, various efforts to improve
on this matter were taken by the government through its six-point
programme, with better management and control of the foreign workers.

Beginning
Jan 1 of this year, Ahmad Husni said that the government has imposed
the minimum wage onto foreign, as well as local workers, whose wages see
an increase of between 30 to 50 percent of overall pay - that is, from
RM600 to RM700 monthly wages, the total amount has now come up to RM900 a
month.

"With its implementation, all workers will receive overtime, and they can receive between RM1,200 to RM1,500 a month," he added.

"To
reduce the rising costs faced by employers, especially the small- and
medium-sized industries, the cabinet today decided that the levy imposed
on foreign workers in 1992, is to be enforced back, with the foreigners
paying the levy instead.

"This policy is to be implemented with
immediate effect for all new foreign workers, or those who are renewing
their work permit or visitor's pass (temporary work)," he said in a
statement.

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